Help needed re: Additions Fee

[matd]

Recently I downgraded my account from an Additions account to just a standard (free) Barclays current account as I was horrified to realise that I was paying £9.50 a month for the Additions account fee. I'm afraid that in the past I was not terribly money-savvy and was rather confused by banking procedure, being one of those foolish people that didn't really read their bank statements (mild dyslexia - specifically, number difficulties), so I wasn't a) aware that a fee was coming out of my account although I must have agreed to it at the time and b) wasn't aware that one could get bank accounts without paying for them (I naively believed that it was ok to pay a bank to look after your money, as if they were a secure storage facility, not that I was in fact lending them money and paying them for the priviledge!)

 

I'm estimating that I must've had my account changed to an Additions around mid-1996. I was told that my account would have to change to an Additions account because my student account was no longer relevant as I was now working (I graduated the previous year). I don't remember anything about an account fee being mentioned, but I do remember the glossy leaflets telling me about all of the extra freebies I would be getting for nothing.

 

If I remember correctly these "freebies" were a will-writing service (I would have been about 25 at this time), breakdown cover (I either didn't have a car at that time, or if I did I had cover with the AA), access to a legal helpline (useless as you can get free legal advice anyway) and some sort of family benefit (I was single). At no point was I asked if I would have any use for the services, or indeed offered a free, vanilla bank account.

The only thing I would have had any use for would have been the "free" overdraft, and I believe that even that was only free up to a certain amount.

 

The thing is, at the time I was sold the account I was quite shaky on the money front anyway and was always overdrawn. A couple of times I was made to take out a high-interest no-frills consolidation loan by the bank to clear my persistent overdraft, so I can't see why they thought that I'd be helped by an account charging a premium fee (especially as my take home pay was in the region of £750 to £800 a month at that time). Indeed a couple of times in the late 90s/early 00s when I was in great financial difficulty and met with a barclays personal advisor, I was never advised to change to a more relevant free account and instead was just "advised" to spend less on food and bills!

 

To bring us up to the present: I'm very angry that I was taken advantage of in this manner. I would certainly like to claim back my additions fees and would like to know where I stand. My worries are that I don't really have a very clear and definite idea of when the account was "upgraded" (other than it was around 1996-ish) and I can't remember whether I consented or not. I also don't have any of the paperwork or terms and conditions relating to the account, although I have recently sent off a Subject Access Request for my current account (same account number and sort code as the addition account). Whether the statements will go back as far as 1996 when they arrive remains to be seen.

 

Can anyone give me some guidance as to what the wording of the letter should be in light of my situation? And if I claim for the Additions fees, will that jeopardise my claim for bank fees (unauthorised overdraft fees).

Should the claims be pursued separately? And if I do claim, do I add 8% interest to the charges (I've roughly added up that Barclays have charged me just over £1000 before interest throughout the life of the account).

Lastly, does the burden of proof lie with the bank as to how and when my account was changed to an Additions - do I have a leg to stand on? Won't they just argue that I should have been aware of my monthly statements and that I could have easily downgraded my account at any time I chose to? That is my main worry.

 

If it makes any difference, I hadn't used any of the services included in my account over the ten years I had it.

 

Many thanks to anyone that read my post, I really appreciate it!

[embleton01]

Hi matd - Welcome !!

 

I myself was fooled into upgrading to an Additions account (what was all that about??!! )

 

Unfortunately I don't think you can claim for this as it was an account fee and not a penalty charge. However I am still a newbie at all this so anyone feel free to butt in an correct me.

 

If its any consolation I fell for it and can't believe it took me 2 and a half years to realise I was paying them for......?????

 

Emble x

[sophie T]

Hello!!

I too was duped into this and was paying the monthly fee without realising for an account that had no use to me for well over a year. I would certainly be interested in anyones ideas with regards to this matter as when i discovered the error Barclays had not even an apology to make, they just said something along the lines of checking my statements regulary - i was 19, why would i??? It makes me sick to think of the money that was wasted that year!!

[Rooster-UK]

Unfortunately I don't think you can claim for this as it was an account fee and not a penalty charge. However I am still a newbie at all this so anyone feel free to butt in an correct me.

 

I believe that that is correct. The additions fee is a fee for services and not punitive charges, so you will not be able to reclaim those.

[matd]

It seems that there is a precedent on this board for claiming back Additions fees.

See this thread (look about 2/3rds way down the page to the post from Smegnoguk):

 

http://www.consumeractiongroup.co.uk/forum/barclays-bank/461-barclays-charges-update.html

 

I wonder if I have recourse to the banking ombudsman at all, or any other assistance?

[MrMatteh]

There's only one thing the Additions Account is good for - and thats the travel insurance!

 

Its the *only* Travel Insurance policy that covers Valuables packed in your suitcase and checked in-luggage (Airline looking after it on the aircraft).. all other policies dont cover that!

 

Also, Im under the impression that theyve now included Household things onto it as well!

 

 

sorry, had to say that

[sophie T]

Thanks matd,

 

im going to look into this...

[matd]

Good luck Sophie - any idea what your first course of action might be? I'm sure we can make a complaint and get something back, it's just a case of where to begin.

I've tried sending a message to Smegnoguk to see how they worded their letter, but I haven't had a reply yet.

[sophie T]

Ok, i have phoned Barclays today (my local branch) and they seemed quite helpful on the matter. The agent i spoke to looked back over my account in the last seven years and confirmed the dates i paid for this service. He told me to put into writing about how i was telephoned and then upgraded to the service without my consent.

The address he told me to write to was the Leicester address:

Barclays bank PLC,

Leicester,

LE87 2BB.

Im going to await the arrival of my bank statements first to double check the dates he told me were correct (i trust no-one!!).

As far as i can tell i have nothing to lose by requesting a refund.

[matd]

Brilliant! Good luck Sophie - keep us posted on your progress!